JEFFERSON CITY, Mo. -
That's one, as in just one group in its field of membership and just one fee that it charges (for insufficient funds). And even that one fee is far below the industry norm at $10.
The $51-million credit union, which serves 5,800 state employees and their immediate families, must be doing something right. In Callahan & Associates' Return of the Member rankings, Conservation Employees' CU was No. 1 in Member Service Usage (MSU), No. 2 in Return to the Member (ROM) and 10th in Return to the Borrower (ROB).
"We give back as much as we can," CECU President Sandra Clink said. "We pay bills, then try to have better rates."
Credit union staff meets with the board of directors each month and sets loan and CD rates based on the credit union's level of income and competition in the mid-Missouri area.
For example, Conservation Employees' present car loan rate is 5.00% and includes 2-year-old cars and trucks, plus industrial and farm equipment. Used vehicles older than three years can be bought with a 5.75% rate, VISA credit cards are set at 12% and student loan interest rates are at 6%.
"Our car loan rates are some of the lowest in the nation," Conservation Chairman Larry Vangilder said. "It's the members' money. We're not here to make a profit."
Car loans are Conservation Employees' highest performing product and make up half of the CU's $41-million portfolio. Clink also said Conservation Employees' members can get signature loans less than $1,000 or up to $8,000 with rates ranging from 8% to 12%. A recent CD campaign offered a 14-month note at 5.9%. CECU offers three-, six-, 12-, 18-, 24-, 36- or 48-month CDs with a minimum deposit of $500. The CU prides itself on offering a full array of products and services, Clink said, noting that it is this product mix, paired with competitive rates that help to "keep members on the farm."
Despite the fact that the credit union's lending system isn't automated, 99% of all loans are completed in the same day, with loan officers calculating the loan cost and availability on a case-by-case basis while the member is right there with them.
But it's not just about the loans or the rates. In keeping with its general aversion to fees, CECU offers free bill pay and checking.
The CU also offers a Visa card with 1% cash back and a 12% interest rate-as it has done for the last decade.
Noting that it might be hard for other credit unions to duplicate some of these offerings (as well as its loan loss of less than a half of a percent), Clink said the strategy has worked well for Conservation Employees, which saw 12% growth in assets in 2005 and a 20% increase in loans. Indeed, under Clink's 10-year tenure, the credit union has grown from $19 million to $51 million.
Noting its single core sponsor, its sole fee, and its competitively priced product mix despite its size, Vangilder noted, "we're definitely unique."
